NYSSCPA Learns About Uncertainties Related to IFRS

The New York State Society of Charted Professionals of Accountants learnt from the IASB representatives as well as the FASB regarding the existing state of IFRS and its future in the United States.

During a conference meeting held at the offices of the NYSSCPA’s, Patrick Finnegan, the International Accounting Standards Board’s member informed the attendees of the meetings about the statues of the project related to leasing as well as remaining activities. Finnegan mentioned that there have been few concerns with the disclosures amount as well as entities not getting the required information regarding assets pertaining to leasing. In addition to this, timelines are yet other problem. Finnegan also stated that transitioning to IFRS is yet another big problem since it involves a lot of money.

Even as the International Accounting Standards Board and Financial Accounting Standards Board are also working on the details, both the boards are planning to release yet another ED (Exposure Draft) related to the topic by the coming week. However, Finnegan also clarified that the procedure of offering back comments on the draft will not happen instantly. The International Accounting Standards Board is hoping that it will get all the comments by the 1st quarter 2013. The FASB and the IASB is then going to think about the financial standard in the autumn to provide the board some amount of time for digesting all the comment related letters.

Finnegan further stated that this draft is going to be targeted and if things fall in place then a standard will be finalized by 2014. Finnegan also held discussions regarding International Financial Reporting Standards for Small and Medium Enterprises that were stripped down in the month of July in 2009. Finnegan also mentioned that the while fifty of the world’s largest stock exchanges have only around forty five thousand public listed entities, there are around twenty eight million private segment enterprises in Europe and the United States has around twenty five million private companies.

The complete set of International Financial Reporting Standards has over three thousand items in the checklist related to disclosure and there are three hundred disclosures in International Financial Reporting Standards for small and medium enterprises.